Author: April Magallon

Keep it safe. If you want a little more cover, you can reduce costs by parking your car in a secure garage, this reduces the likelihood of theft and your premiums.

Get a cheap car. That’s right. If you’ve got a Lamborghini, you won’t be able to get very cheap insurance. A cheap car normally means lower premiums as its less likely to be stolen.

Keep your record clean. If you have more tickets than sense, then its going to be very difficult for you to get cheap or even reasonably priced insurance. Be a safe driver, a careful driver, a driver who has money left over for petrol after he pays for his insurance. Being female may also help, but there’s not much you can do about that if you’re a guy.

Get it online. Many companies offer discounts if you buy your insurance online, and why not. Saves you time and money and you can’t beat that.

Don’t let the kids drive the car. Teenagers can add massive amounts to your premiums because of their propensity to crash into things. If you want to save money then keep them in the passenger seats.

Combine it. Combining your car insurance with house and contents can lead to savings in both areas. It’s worth thinking about if you have some nice things at home.

1) Shop around and buy online: Figures show that many people simply renew their current policies without shopping around. The internet makes it easy to compare prices from different insurers, so why not take advantage of this? Plus, you’ll usually get a discount of 10{003491dbbd4cc0b74e69580e955ffd3c40a8346a4eefda9728ac2915a176b5e3} or more just for buying your policy online.

2) Policy type: do you really need a comprehensive policy with all the extras? Going for a third party fire & theft policy can reduce your premiums hugely, and is definitely worth considering if your car isn’t an expensive model.

3) No claims discounts: Nearly all policies feature a discount that increases for every year you don’t make a claim. The higher the discount available, the more you could save. Also look at insurers offering a ‘no claims bonus for life’ feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line.

4) Excess: The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums.

5) Security: Fitting your vehicle with an alarm, immobiliser, or other security devices can lead to premium reductions. Parking you car off-road, for example on a driveway or in a garage, will also mean a cheaper policy.

If you have been hospitalized for a long period of time, you are entitled to a higher compensation. If you are unable to work because of disabilities you may be eligible for a lifelong compensation. The compensation of disabled person will include the beneficiaries of the victim. He will also get the income he earns in a year. In considering your car’s insurance, make sure that you know what your insurance covers. Dealing with the accident requires investigation to know who is at fault, and to find out if the other party is required to give compensation to the victim. An accident lawyer is perfect for this situation. You might not be familiar with the rules of filing for a claim, but a lawyer will be.

Sometimes, being handicapped allows for the full compensation in filing for a claim. In order to get the compensation, you must choose the best lawyer who will not take advantage of you and your rights as a victim. Sometimes, the law takes advantage of the disabled person and of those who are not aware of the rules.

Claims and compensation will consider the nature and the duration of injuries. If you have recovered from the injuries in days, you will get a smaller compensation compared to severe injuries which might take a month or longer in the hospital to heal. You should not worry about the expenses because you will rightfully get your compensation as long as the case is adjudicated. Pain, suffering, and disability is measured in determining a rightful compensation.

The law requires car insurance intended for public use. So it is better to find out if your car is insured and the consequences that you may face should you have an accident. It is important to make sure that the statements that you are going to give to your insurance company are correct so that the claim will be handled accordingly.

We’re all aware that our credit score is used to determine the spending limit on our credit cards or interest rates on loans. Our creditworthiness is used by lenders to gauge our ability to pay back loans and the amount of money we have to do so.

On the contrary, insurers don’t care how much money you have in the bank–they just want to know how you’ve used your credit in the past and how it’s influenced the way you pay bills, loans and other debts.

Because insurers use credit differently than traditional lenders, they’ve come up with a score all their own: the insurance score.

Formulating an Insurance Score

How do insurers formulate an insurance score? Fair Isaac, a financial management solutions company, provides insurers with a formula with which to calculate your insurance score. And while that formula does involve your actual credit score, your insurance score is calculated in a way which quantifies how you’ve used credit in the past.

The good news for consumers is that because of this formula, no one item can prevent you from receiving a good auto insurance rate. But what is of concern to car insurance shoppers is that insurance rates can vary from insurer to insurer.

Why?

For the most part, insurers are allowed to come up with their own scoring models. This is also good news for consumers–your insurance score might be better with XYZ Company rather than ABC Company. This further highlights the importance of shopping around for the best auto insurance rate.

Elements of an Insurance Score

So how do you know what components are incorporated into your insurance score?

According to Fair Isaac, the following factors are used to determine an insurance score:

Payment history

Length of credit history

Amount owed on revolving accounts

Delinquent items and collections

Amount owed for delinquent items

Time passed since last delinquency or late payment

Total amount of outstanding debts

Fair Isaac does not consider the following:

Race, age, sex, marital status, religion or country of origin

Employment history, job title or salary information

Child support agreements

Rental obligations

Whether you have or are participating in credit counseling

Where you live

If you’re curious about your insurance score, direct all questions to your insurer. While they may not disclose your actual score, they should be able to answer any and all questions related to credit-based scoring.

Cleaning Up Credit

While some states are questioning the insurance industry’s right to use credit information in determining auto rates, 92 percent of the nation’s 100 largest auto insurers are currently using credit to develop insurance scores–and folks with bad credit are paying anywhere from 20 percent to 50 percent more than drivers with good credit.

Obtain the best possible insurance score and:

Look over your credit report. Most states entitle you to at least one free credit report each year. Get a copy of your credit report and check for any errors that may hinder your ability to obtain a good insurance score.

Pay on time, all the time. Automatic withdrawals and online banking are making it easier for consumers to make timely payments. If you have a hard time remembering what bills are due and when, online bill pay is probably a good move to make!

Pay down large balances. If you have large outstanding balances or revolving debt, work on paying those balances off as soon as you can. Revolving debt has negative affect on your credit score–especially if you owe large amounts of money.

Actually, understanding well about auto insurance before taking a policy of car insurance will give you the confidence that the insurance company you choose is the best and will take care of your needs in case of necessity. There are many factors to be considered before you choose your auto insurance. Some of the factors are the type of car you have your driving records and the amount of premium you can pay.

Actually car insurance is a must when you have a car. Purchasing car insurance is actually buying a policy, which is based on the factors like the type of car you have and the kind of insurance you opt for. Car insurance policies are in fact a package with different coverage for your vehicle.

The liability coverage pays for any injuries in the body, which includes medical expenses, suffering, pain and wages lost. It also includes other damages like damages to property and automobiles.

There is another coverage called collision, which usually pays for the damages caused due to collision with other vehicles or other objects. The comprehensive coverage is not just for any car accident but also for damages caused due to fire, flood, theft, hail or vandalism.

The medical coverage pays for the medical expenses caused by car accidents. When your car meets with an accident and you use a rental car, then you can make use of the rental reimbursement coverage. More often this coverage offers daily allowance for rental cars.

Apart from the safety net that they provide you in case of accidents that may be your fault or the other driver’s fault, the most important reason that car insurance is mandatory is that almost every state has laws requiring a certain minimum amount of insurance for cars and drivers. It is better to know the laws prevailing in your state to find out the optimum amount of insurance you require.

While purchasing you should also look for companies that offer discounts on many grounds. There are discounts for accident free driving, for good students, for having more than one car etc., so ask the company about the discounts that you can avail.

Multiple Policy Discount – This one is common and yet there are many people that do not take advantage of this discount. This discount can be as high as 15{003491dbbd4cc0b74e69580e955ffd3c40a8346a4eefda9728ac2915a176b5e3} with some companies.

Good Driver Discounts – Insurance companies love to reward the driver that has an excellent driving record. These are profitable policyholders and help bring the over all rates down.

Auto Safety Features Discount – Automobiles with airbags and seatbelts receive lower rates. Anti-lock brakes and anti-theft devices also lower car insurance rates. The vehicle identification number will identify all of these features and so it is important to give that number to whoever is quoting your car insurance.

Young Driver Discounts – Many companies give substantial discounts for high school and college students that have a 3.0 grade point average or better. The drivers training discount has been a standard discount for young drivers. Find a company that has both and you will help lower premium dramatically.

Senior Citizens Discounts – Drivers 55 and older are given retirement discounts if no longer employed. Homemakers can qualify automatically at age 55 with some companies. Mature driver discounts are also available when a driving course is completed.

Lower Tort Option – There are some states that have a lower or limited tort option. This is your ability to sue for pain and suffering. The lower tort option limits your ability to sue but at the same time it can save you 20{003491dbbd4cc0b74e69580e955ffd3c40a8346a4eefda9728ac2915a176b5e3} or more in your premium. Contact your agent or insurance company about the tort laws in your state.

According to one reliable source, the average auto insurance premium fell almost 2 percent last year, to an average of just over $2,300 per household.

That may not sound like much, but it translates to an average savings of $60 a year.

If you weren’t one of the lucky ones who got a pleasant surprise when your auto insurance policy renewed this year, don’t despair. You can still save money on your premium by following a few simple steps:

Comparison Shop. If you have a good driving record and/or buy a safer car, your premium should go down. Plus, with some companies now charging lower rates, increased competition means better auto insurance rates for you! Take advantage of online marketing services like InsureMe.com to find the best auto insurance rates from competing insurers.

Find out what your insurance will cost before you buy that new car. Auto insurance companies typically charge more for cars that are expensive to repair or don’t fare well in accidents. So before you drive off that lot, make sure your new car is considered safe, and relatively cheap and easy to repair by your insurer. This will help minimize risk…for both of you!

Ask your insurer for discounts. These cost-savers can lower your insurance premiums more than you might think:

Combining two or more cars on one auto insurance policy

Buying a car with airbags or other safety equipment

Installing anti-theft devices in your vehicle

Completing a driver’s education course

Insuring your home and auto with the same insurer

Applying for a mature driver discount (for those between 50 and 65)

Getting good grades (for students under 25)

Take the highest deductible you can afford. Your deductible is the amount you pay out-of-pocket, in case of a claim, before your insurance company starts paying its share. The higher your deductible, the lower your premium–it’s as simple as that. Just be sure you’re able to absorb a larger portion of your loss in case of an accident.

Improve your driving record. The more tickets and accidents you have, the more your auto insurance costs. So drive cautiously, improve your motor vehicle record, and inform your auto insurance company of the change. They’ll reclassify you as a safer driver, and lower your auto insurance rates in the process!

Consider dropping comprehensive and/or collision coverage if you drive an older car. Physical damage coverages like these reimburse you for damages to your own car. But if the vehicle you drive is several years old–or worth less than $1,000–it may not be worth much anyway. Dropping such unnecessary coverage can really save you money.

Today, all 50 states require some form of financial responsibility when it comes to automobiles. Some states require actual car insurance from a licensed car insurance company, and some merely require us to provide proof of financial responsibility should we find ourselves in a motor vehicle-related accident one day.

Even though it’s illegal to skip out on your state’s car insurance or financial responsibility requirements, the fact is that many people to skip out. This is why it’s so important for you to protect yourself with adequate car insurance or financial responsibility, especially if you frequently travel. When we travel, we aren’t always familiar with the interstate highways and smaller town roads we drive to get to our destinations. Other drivers may be just as unfamiliar with the roads as you are. This unfamiliarity can lead to motor vehicle-related accidents.

If you’re involved in a motor vehicle-related accident with a driver who doesn’t have any car insurance, much less adequate car insurance, you’ll be able to rest assured that you’ll at least be covered. You can do this by not only meeting your state’s car insurance or financial responsibility requirements, but by exceeding them. Consider going beyond just purchasing liability insurance and purchasing full coverage insurance. You should also look into underinsured motor insurance coverage – this will protect you in the event that you’re involved in an accident with a driver who has no insurance, or not enough insurance, to cover physical and property damages.

The cheapest isn’t the only thing to look for when you compare auto insurance. You have to consider the insurance company themselves. Established insurance companies are your best bet for great service and responsiveness.

You might find some newer insurance companies that low-ball the premiums in order to get your business. Watch out! Companies like these sometime leave people high and dry when it comes time to pay for insurance claims. The money you saved with the premiums will be spent trying to rectify the problems you have with the company. Not only that, your rates might go up the following year, leaving you to re-do auto insurance quotes comparison.

Compare auto insurance rates and compare auto insurance companies.

When you compare auto insurance rates, make sure you do so well before your current policy expires. That way, you’ll have plenty of time to compare auto insurance companies. You’ll also be able to explore each company and dig for discounts. You’ll also have plenty of time to ask questions of insurance agents that you can’t ask online.

Once you have auto insurance comparison, you’ll know exactly what goes into your premiums and be able to get the discounts that apply in your situation. You’ll have a good understanding of the different coverages available, and whether or not you need to have them. Most importantly, you’ll have an appreciation for the different companies and their reputations. Insurance company ratings make all the difference between a hands-off insurance experience and a full-blown insurance nightmare.

When you apply for auto insurance, one of the decisions you’ll have to make is how much your deductible will be, which is essentially how much you are willing to come out of pocket in the event of an accident. If the accident results in damages that require more than your deductible, your insurance company will cover the rest so in their eyes, a higher deductible makes it more likely that they will be “off the hook”. They reward you for that by reducing your premium so for a lower premium, increasing your deductible is certainly an option. Just be sure you have the cash on hand to cover those expenses in case an accident does occur. This also means not having any insurance claims on your record since that will obviously make the insurance cautious about doing business with you.

Add an Anti-Theft Device

This can help save you a few dollars per month as long as you purchase a system that your insurance company recognizes. It would be a good idea to check with them to see what the requirements are or if they have any recommendations on particular makes and models. In addition to the lower premiums you’ll enjoy, you can also rest easy knowing that your car will be a much harder target for thieves once you add your new alarm system.

Enroll in a Defensive Driving Course

This can also save you a bit on your payments but much like the anti-theft suggestion, you’ll want to be sure that your insurance company recognizes the course and that it’s approved. They might even be able to recommend some training facilities in your area.

Compare Rates Online

Quotes from different auto insurance companies can vary wildly, even for the same driver and same car. Since that’s the case, it’s always a good idea to check your insurance rates against what other companies might be prepared to offer. As long as you know you’re getting the exact same coverage in terms of the type of coverage and amounts, it might make sense to switch to a new insurance company and pocket the difference. Luckily many sites online provide instant quotes for auto insurance, allowing you to compare multiple offers at your convenience, any time of the day. Once you find an offer that meets your needs, you can have your new policy and insurance cards in hand in a matter of minutes.